Incentives

We make sure you find

the best investment environment

We provide great incentives to boost your operations

The most competitivetax incentives

The Free Trade Zone Regime is the mainstay of Costa Rica‘s export and investment promotion strategy. It is a set of incentives and benefits granted by the Costa Rican government to companies making new investments in the country and it provides tax incentives.

Companies that may apply for the Free Trade Zone System Regime:

EXPORT SERVICES Companies

50% of services must be exported

Scientificresearch firms

Either companies or organizations

Strategic sectors or companies

Outside the Geater Metropolitan Area

Significantsuppliers

40% of sales to FTZ companies

List of incentives granted:

Costa Rica´s tax incentives and benefits are standardized. They apply to any and all companies according to their operation, so there is no need for negotiation on a per case basis. In addition, entities wishing to set up operations in areas outside the Greater Metropolitan Area (GMA) can enjoy greater benefits. Discover the option according to your needs.

All Sectors:

No expiration period

Custom duties on imports/exports

Withholding tax on royalties and fees

Interest income

Sales tax on local purchases of goods/service

Stamp duty

10 year period*

Property Transfer Taxes

*NOTE: The 10 year period will start after the 3-year grace period is over or when the company starts operations, whichever comes first, but the benefit will be granted immediately upon approval of FZ Regime.

SERVICE PROJECTS & MANUFACTURING PROJECTS*

*NOTE: Manufacturing companies with an investment that exceeds US$10 million and 100 employees, established under the Free Trade Zone Regime. For smaller manufacturing operations, companies will pay a preferential 6% income tax rate for 8 years and 15% for another 4-year period (statutory income tax 30%).

first 8 year period100%INCOMETAX EXEMPTION

Following 4 year period50%INCOMETAX EXEMPTION

In all cases, multiple additional 8-year renewals periods may be granted if significant reinvestment is made.

NOTE: Companies with an investment that exceeds US$10 million and 100 employees, established under the Free Trade Zone Regime. Additional 12-year renewal may be granted if reinvestment is made (statutory income tax 30%)

Industrial Parks and Free Zones in Costa Rica:

The country offers a wide variety of industrial parks and office centers, both within and outside of the Greater Metro Areas, with features that offer the right conditions to your business. These are some of the options available.

MANUFACTURING PARKS

SERVICES PARKS

Avenida Escazú

Profile

It is the first Lifestyle Center in Costa Rica that combines work, live, shop and leisure at the same place. The project was awarded first place in the Biennale of Architecture, as the best master plan in 2006.

The project has: More than 2,500 parking spaces, shops, residences, hotels and a hospital. It is located in Escazú near the Prospero Fernandez Highway, which aims to become a new area of attraction for cultural, economic and social activities. Offices: It has more than 13,000 m2 of office area located on the upper floors of the Avenue, with the latest technology and safety, with surface and underground parking.

Trade and entertainment:30,000 m2 will be allocated to retail trade, the convenience of nearby hotels (Residence Inn by Marriott and a boutique hotel), restaurants, the first IMAX screen in Costa Rica and 6 modern cinemas.

Contact information:

For more information about this real estate project please contact us at invest@cinde.org

We offer the most attractive and

cost-effective tax incentives in the region

education

INCENTIVES

The Academic System in Costa Rica is open to provide the necessary training/programs, working with companies to address their needs and demands. These Academic Collaboration models are established as a formal agreement between the company and the specific institutions involved.

For example, the National Training Institute (INA) offers free technical training in numerous fields, focusing in the areas like: Industry, Graphic Industry, and Trade and Services.

Any company with operations in the country will have access to INA training for their employees at no additional cost, since INA’s courses are funded by the 1.5% of the total payroll that these companies must pay. Thus, INA training programs can be seen as a subsidy from the government, because the costs of training programs are higher than the 1.5% charged to the company for its employees. The INA has 60 facilities nationwide.

foreigners

INCENTIVES

In Costa Rica, foreigners have equal rights and obligations; they have no limits to property handling and they can conduct business activities freely, for there is free capital movement without foreign exchange controls.

Multinational companies must comply with the same procedures and regulation as local companies to start operations in the country. However, CINDE offers assistance to foreign investors through a immigration procedure.

Streamlined immigration applications and visa granting, with no limitation on number of foreigners working in companies, are some of the incentives Costa Rica offers.

SERVICE PROVIDERS

Free Zones

The Costa Rican Investment Promotion Agency (CINDE) is a private, non profit and apolitical organization that provides investment services for free. During its 35 years, CINDE has attracted more than 280 high-tech companies to Costa Rica, including worldwide leaders such as: Intel, Procter and Gamble, ICU Medical, Baxter, St. Jude Medical, Western Union and many others.